« Could "mens rea" federal statutory reform become a priority for the next GOP Congress and for a Trump Administration? | Main | "Why Donald Trump’s election won’t doom the criminal justice reform movement" »

November 9, 2016

"Prison stocks are flying on Trump victory"

The title of this post is the headline of this notable new CNBC article, which includes these excerpts:

Private prison stocks soared Wednesday after Republicans won control of Congress and the White House.

Corrections Corporations of America and GEO Group had suffered some of their biggest declines over the last several months. But on Wednesday, both stocks recouped some of those losses.  Corrections Corporation gained 43 percent, while GEO climbed more than 21 percent.

In August, the Department of Justice instructed its Bureau of Prisons to begin phasing out the use of private contractors for federal corrections facilities.  Both stocks tanked on the news, but analysts called the market reaction overblown, and questioned how feasible it would actually be for the federal government to build new housing for displaced prisoners....

The stocks fell particularly far after presidential candidate Hillary Clinton expressed her support for the moves and her intention to build on them. "I'm glad that we're ending private prisons in the federal system," Clinton had said in her first presidential debate with Donald Trump. "I want to see them ended in the state system. You shouldn't have a profit motivation to fill prison cells with young Americans."

Days after Clinton made her remarks, both stocks posted their worst quarters in more than 15 years. Now that Clinton has lost, and Democrats failed to gain control of Congress, it appears investors are more sanguine about the future of the businesses.

November 9, 2016 at 07:58 PM | Permalink

Comments

“… questioned how feasible it would actually be for the federal government to build new housing for displaced prisoners.”
A Modest Proposal for an easy fix •

Just do not build new housing for displaced prisoners ‼
1• Rent/lease/buy land in eastern Siberia •
2• Furnish tools , manuals , raw materials to displaced prisoners •
3• Transport prisoners , etc. to Siberia and permit them to build their own housing  
Nemo Me , etc.

Posted by: Moi , the Nemo ♠ Me Impune ♂ in OH | Nov 9, 2016 9:37:09 PM

Post a comment

In the body of your email, please indicate if you are a professor, student, prosecutor, defense attorney, etc. so I can gain a sense of who is reading my blog. Thank you, DAB